Analysis shows how investment is driving a global sustainable aviation fuel industry
The global SAF investment landscape
Our analysis shows that companies based in the USA are the main recipients of investment with investors located across 23 countries. The new Tax Credit scheme implemented by the U.S Department for Energy where SAF producers are eligible for a tax credit of $1.25 per gallon, is creating a positive investment landscape.
The UK ranks fourth in the world for SAF investment, drawing finance from the USA, Saudi Arabia and Canada. Nine UK companies are in receipt of private investment in our analysis.
International instruments to develop a SAF industry
Analysis of all known global SAF plants (Argus) indicates that 78% of nations have a type of instrument or policy either implemented or pending. Our analysis indicates a growing commitment to develop domestic SAF with nations implementing a range of instruments from mandated blend targets to roadmaps or delivery plans.
In the UK, the Government published a response to the second consultation on a SAF mandate followed by the passing of draft affirmative special instrument (SI) on 9 September 2024. The response and SI set out the parameters of a mandate to achieve the target of 10% SAF in the UK aviation fuel mix by 2030 – a policy often cited by industry as a critical requirement (alongside a revenue certainty mechanism) to securing private investment to advance their projects to commercial scale.
There are 10 planned SAF plants in the UK and one operational (where the respective operating company is in receipt of investment) and dominated by Power-to-Liquids (PtL) and Fischer-Tropsch (FT-SPK) technologies. Globally, 41% of investors financed Alcohol-to-Jet (AtJ) projects with PtL seeing a growth.
This analysis provides a useful benchmark to assess the development of the global SAF industry over time alongside domestic policy and instruments. We are releasing this initial version to gain feedback. As we develop this analysis, we welcome any feedback and questions. You can contact us on safenquiries@iuk.ktn-uk.org
The analysis in numbers
From information publicly available and relating to companies in receipt of private investment, we found (as of June 2024):
- £14.7bn investment
- A third of the total investment went to the USA
- 75 companies
- 112 plants
- 11 feedstock types
- 41% of investors financed Alcohol-to-Jet plants
- 63% of global companies with SAF plants in receipt of private investment
- 78% of global nations with SAF plants have a type of instrument or policy
- 29% of plants in the UK in receipt of private investment are Power-to-Liquid
Explore the interactive analysis below.
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Methodology
Our analysis focuses on global SAF plants in receipt of private investment only. Data is derived from publicly available information in Pitchbook, Argus and press releases. The analysis is an indicative assessment of the investment into SAF due to the lack of granularity in investment flows. For more information on the methodology and boundaries, see the analysis above.
Related programmes
Sustainable Aviation Fuel Innovation Programme
Collaboration is essential to building the UK’s SAF supply chain. Our expert team at Innovate UK Business Connect can help you find the right connections and resources to help you develop and commercialise your Sustainable Aviation Fuel project.
Sustainable Aviation Fuel Investment Programme
Innovate UK Business Connect is pivotal to the work currently undergoing to establish a Sustainable Aviation Fuel industry in the UK. As the industry seeks to reach the mandate of 10% SAF by 2030, investment into producers, feedstock, and technologies across the value chain will be critical to reaching this target.